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The Next Big Short is the Trade War

The Compound and Friends

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Navigating Trade Tensions: U.S.-China Economic Dynamics

This chapter explores the intricate relationship between the U.S. and China's economies, focusing on China's treasury holdings and the implications of recent selling behaviors. It highlights the complexities of trade negotiations impacted by tariffs, rising unemployment, and the threat of a trade war, while also discussing the unique challenges faced in agreements with the European Union. The discussion further emphasizes the resilience of the U.S. economy amidst these uncertainties, addressing the concept of 'sneakflation' and drawing historical parallels to underscore the potential risks of unchecked economic policies.

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